DoD Awards $31.1M for Vehicle Maintenance, Facing Potential Overpricing Concerns
Contract Overview
Contract Amount: $31,114,495 ($31.1M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2002-09-30
End Date: 2003-08-26
Contract Duration: 330 days
Daily Burn Rate: $94.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200211!000918!5700!GD15 !OC-ALC/LIDAC !F3460197D0423 !A!N! !N!0090 !20020930!20030826!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY SUITE!MIDWEST CITY !OK!73110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000003922718!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!007!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! !Y! ! !0001!
Place of Performance
Location: CUMBERLAND County, NORTH CAROLINA, 28307
Plain-Language Summary
Department of Defense obligated $31.1 million to URS FEDERAL SERVICES INC. for work described as: 200211!000918!5700!GD15 !OC-ALC/LIDAC !F3460197D0423 !A!N! !N!0090 !20020930!20030826!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY SUITE!MIDWEST CITY !OK!73110!24260!051!37!FORT BRAGG !CUMBE… Key points: 1. Contract awarded to Lear Siegler Services, Inc. for $31.1M. 2. Service involves maintenance and repair of combat vehicles. 3. Competition was full and open, but pricing requires scrutiny. 4. Sector is Defense, specifically vehicle maintenance and repair.
Value Assessment
Rating: questionable
The contract value of $31.1M for a 330-day duration appears high. Benchmarking against similar vehicle maintenance contracts is difficult without more specific service details, but the reported 'not discernible or classified' cost breakdown raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the lack of discernible or classified cost details in the award data limits the ability to assess if the competitive process resulted in optimal pricing.
Taxpayer Impact: Taxpayer funds are being used for this contract. While competition was present, the potential for overpricing means taxpayers may not be receiving the best value for their investment.
Public Impact
Military readiness and equipment availability are directly impacted by this maintenance contract. The contract supports jobs within the defense sector and potentially the local economy in North Carolina. Transparency in defense spending is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of cost transparency
- Potential for overpricing
- Limited detail on service scope
Positive Signals
- Full and open competition utilized
- Contract supports critical defense equipment
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance and repair of combat vehicles. Spending in this area is critical for national security, but often involves complex equipment and specialized services, making cost benchmarking challenging.
Small Business Impact
The award data does not indicate any specific set-asides for small businesses. The prime contractor, Lear Siegler Services, Inc., is a large business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense, Air Force. Oversight mechanisms should ensure that the services rendered are necessary, performed to standard, and that costs are reasonable, especially given the lack of detailed cost breakdown.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost breakdown
- Potential for contractor inefficiency
- Ambiguity in service scope
- Time and Materials contract type can lead to higher costs
- Limited ability to benchmark pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to URS FEDERAL SERVICES INC.. 200211!000918!5700!GD15 !OC-ALC/LIDAC !F3460197D0423 !A!N! !N!0090 !20020930!20030826!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY SUITE!MIDWEST CITY !OK!73110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000003922718!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !5!B!M! !A! !99990909!B
Who is the contractor on this award?
The obligated recipient is URS FEDERAL SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $31.1 million.
What is the period of performance?
Start: 2002-09-30. End: 2003-08-26.
What specific maintenance and repair services are included in this contract, and how are they priced?
The data indicates 'MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES' for 'COMBAT VEHICLES'. However, the specific services are 'NOT DISCERNABLE OR CLASSIFIED'. The pricing is 'TIME AND MATERIALS'. Without further details on labor rates, material markups, and the scope of work, it's impossible to fully assess the value or justify the $31.1M cost.
Given the 'Time and Materials' contract type and lack of cost transparency, what are the primary risks to the government?
The primary risks include cost overruns and potential fraud. A 'Time and Materials' contract is susceptible to inefficiency, as the contractor is incentivized to bill for more hours or use more expensive materials. The lack of classified cost details exacerbates this risk, making it difficult for the government to verify the reasonableness of charges.
How effective is the 'full and open competition' strategy when cost details are not discernible or classified?
While 'full and open competition' is generally effective in driving down prices, its effectiveness is diminished when critical cost information is not discernible or classified. Bidders may not have a clear understanding of the government's cost expectations, and the government may struggle to compare bids effectively if the underlying cost structures are opaque. This can lead to awards that are not necessarily the best value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Address: 175 ADMIRAL COCHRANE DR, ANNAPOLIS, MD, 03
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3460197D0423
IDV Type: IDC
Timeline
Start Date: 2002-09-30
Current End Date: 2003-08-26
Potential End Date: 2003-08-26 00:00:00
Last Modified: 2009-10-01
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